Description
Reliance Infrastructure Ltd., formerly known as Reliance Energy and before that as Bombay Suburban Electric Supply (BSES), is India's largest private sector enterprise power utility. It is part of the Reliance Anil Dhirubhai Ambani Group, one of India's largest conglomerates. The company is headed by Anil Ambani.
Strictly Private & Confidential
CASE STUDY ON RELIANCE INDUSTRIES LTD
November 2008
Presented By:
S. Subramanian Ph.D.
ead !" In#estment Ban$in%&
ENA' Se(urities P#t. Ltd.
Strictly Private & Confidential 2
Agenda
ENA'
ENA'
About Restructuring
About Restructuring
Case Study - Value Creation through listing
Case Study - Value Creation through listing
Nicholas Piramal India td
Nicholas Piramal India td
Reliance Industries td
Reliance Industries td
!V "# India imited
!V "# India imited
Case Study $ Control & %&nershi'
Case Study $ Control & %&nershi'
Sterlite
Sterlite
(harat )orge
(harat )orge
%ther Cases
%ther Cases
Strictly Private & Confidential * 3
+ulti'le Cham'ion !eams , India’s eading Investment (an-
Source . Prime database/ Inde0 of Performance Ran-ings
In#estment
Ban$
Cor'orate
)inance
+&A
Private
12uity
Instituti!na)
Sa)es
(ro-ing
Retai)
3istribution
1nam 3irect
Insurance
(ro-ing
A'C
4ealth
+anagement
Advisory
Pr!*rietary
In#estments
!reasury
Private 12uity
Resear(h
?
5Pioneers of e2uity research in India6 7(usiness India8
?
4ide global distribution9 read by over :;; institutions around the &orld
?
(road coverage 7"
7Parent8
Shareholders
J Co>
7Subsidiary8
isted
isted
3istribution of
shares of J Co>
to the
shareholders of
M Co> 'ursuant
to a scheme of
arrangement
Single (usiness
1ntity
M Co>
7Parent8
Shareholders
";;?
isted
M Co>
7Parent8
Shareholders
isted
3istribution of
shares of A/ (/
& C Co> to the
shareholders of
M Co> 'ursuant
to a scheme of
arrangement
+ulti'le (usiness
1ntity
A Co>
7Subsidiary8
!ea business
Cnlisted
( Co>
7Subsidiary8
Steel
(usiness
C Co>
7Subsidiary8
!elecom
(usiness
Cnlisted Cnlisted
A Co>
7Subsidiary8
!ea business
isted
( Co>
7Subsidiary8
Steel
(usiness
C Co>
7Subsidiary8
!elecom
(usiness
isted isted
";;? ";;?
Strictly Private & Confidential N
Alternative Routes
?
)ormation of a s'ecial 'ur'ose com'any 7SPV8 $ A ";;? subsidiary of 'arent com'any
?
!ransfer investments 7shares of J Co>8 from 'arent com'any to SPV 'ursuant to a scheme of arrangement and get shares of SPV
listed
?
Alternative "A - +erge SPV into J Co> at a later 'oint in time and get J Co> shares listed or Alternative "( $ +erge J Co> into the
SPV at a later 'oint in time/ to be decided de'ending on ta0 and cost efficiency> Alternative 2 $et only SPV remain listed &ithout
any merger> Alternative" is 'referred 'urely from an administrative convenience rather than from a shareholder value
'ers'ective>
6!rmati!n !" SP7
Trans"er !"
In#estments t! SP7<
Parent Co
SPV
Shareholders
isted
isted
J Co
Issue of Shares in
Consideration
!ransfer of
investment
Parent Co
SPV
Shareholders
isted
A)ternati#e +A
J Co
isted
Parent Co
SPV
Shareholders
isted
A)ternati#e +B
J Co
isted
Cnlisted
Issue of Shares in
Consideration
Parent Co
SPV
Shareholders
isted
Cnlisted
J Co
Cnlisted
- +erge SPV into J Co/ and get J Co>
shares listed
- As consideration J Co issues shares
to shareholders of SPV i>e> Parent
Co and its shareholders
- +erge J Co/ into SPV
- Investment of SPV in J Co
&ill get cancelled> No
further shares &ill be
issued
";;?
";;?
OStructure under Alternative 2 shall be similar
SPV to merge into J
Co>
J Co> to merge into
SPV
A)ternati#e +
Strictly Private & Confidential ";
Agenda
1NA+
1NA+
About Restructuring
About Restructuring
Case Study / 7a)ue Creati!n thr!u%h )istin%
Case Study / 7a)ue Creati!n thr!u%h )istin%
Ni(h!)as Pirama) India Ltd
Ni(h!)as Pirama) India Ltd
Reliance Industries td
Reliance Industries td
!V "# India imited
!V "# India imited
Case Study $ Control & %&nershi'
Case Study $ Control & %&nershi'
Sterlite
Sterlite
(harat )orge
(harat )orge
%ther Cases
%ther Cases
Strictly Private & Confidential ""
Case Study - Nicholas Piramal India td
NPI
@@P
? S(heme !" Arran%ement bet5een Ni(h!)as Pirama) India Ltd. =NPIL> and ?!@am 6inin#est Ltd. =?6L> "!r trans"er !" AB.CDE
sta$e !" 4u@arat 4)ass Pri#ate Ltd. =44PL> he)d by NPIL t! ?6L
? A**!inted Date F .+
st
Gu)y 1..B& E""e(ti#e Date F 11
nd
De(ember 1..B
Shareholders
:B?
isted
Cnlisted
Pri!r t! S(heme !"
Arran%ement
NPI
@@P
Shareholders
:B?
isted
Cnlisted
Pri!r t! the
A**!inted Date
P)
Cnlisted
";;?
?
P) &as incor'orated on *;
th
Qune 2;;*
&ith a 'aid u' ca'ital of Rs> < a-hs as
a &holly o&ned subsidiary of NPI
NPI
@@P
Shareholders
:B?
isted
Cnlisted
Pursuant t! a S(heme !"
Arran%ement
P)
isted
;>
Reliance Infrastructure Ltd., formerly known as Reliance Energy and before that as Bombay Suburban Electric Supply (BSES), is India's largest private sector enterprise power utility. It is part of the Reliance Anil Dhirubhai Ambani Group, one of India's largest conglomerates. The company is headed by Anil Ambani.
Strictly Private & Confidential
CASE STUDY ON RELIANCE INDUSTRIES LTD
November 2008
Presented By:
S. Subramanian Ph.D.
ead !" In#estment Ban$in%&
ENA' Se(urities P#t. Ltd.
Strictly Private & Confidential 2
Agenda
ENA'
ENA'
About Restructuring
About Restructuring
Case Study - Value Creation through listing
Case Study - Value Creation through listing
Nicholas Piramal India td
Nicholas Piramal India td
Reliance Industries td
Reliance Industries td
!V "# India imited
!V "# India imited
Case Study $ Control & %&nershi'
Case Study $ Control & %&nershi'
Sterlite
Sterlite
(harat )orge
(harat )orge
%ther Cases
%ther Cases
Strictly Private & Confidential * 3
+ulti'le Cham'ion !eams , India’s eading Investment (an-
Source . Prime database/ Inde0 of Performance Ran-ings
In#estment
Ban$
Cor'orate
)inance
+&A
Private
12uity
Instituti!na)
Sa)es
(ro-ing
Retai)
3istribution
1nam 3irect
Insurance
(ro-ing
A'C
4ealth
+anagement
Advisory
Pr!*rietary
In#estments
!reasury
Private 12uity
Resear(h
?
5Pioneers of e2uity research in India6 7(usiness India8
?
4ide global distribution9 read by over :;; institutions around the &orld
?
(road coverage 7"
7Parent8
Shareholders
J Co>
7Subsidiary8
isted
isted
3istribution of
shares of J Co>
to the
shareholders of
M Co> 'ursuant
to a scheme of
arrangement
Single (usiness
1ntity
M Co>
7Parent8
Shareholders
";;?
isted
M Co>
7Parent8
Shareholders
isted
3istribution of
shares of A/ (/
& C Co> to the
shareholders of
M Co> 'ursuant
to a scheme of
arrangement
+ulti'le (usiness
1ntity
A Co>
7Subsidiary8
!ea business
Cnlisted
( Co>
7Subsidiary8
Steel
(usiness
C Co>
7Subsidiary8
!elecom
(usiness
Cnlisted Cnlisted
A Co>
7Subsidiary8
!ea business
isted
( Co>
7Subsidiary8
Steel
(usiness
C Co>
7Subsidiary8
!elecom
(usiness
isted isted
";;? ";;?
Strictly Private & Confidential N
Alternative Routes
?
)ormation of a s'ecial 'ur'ose com'any 7SPV8 $ A ";;? subsidiary of 'arent com'any
?
!ransfer investments 7shares of J Co>8 from 'arent com'any to SPV 'ursuant to a scheme of arrangement and get shares of SPV
listed
?
Alternative "A - +erge SPV into J Co> at a later 'oint in time and get J Co> shares listed or Alternative "( $ +erge J Co> into the
SPV at a later 'oint in time/ to be decided de'ending on ta0 and cost efficiency> Alternative 2 $et only SPV remain listed &ithout
any merger> Alternative" is 'referred 'urely from an administrative convenience rather than from a shareholder value
'ers'ective>
6!rmati!n !" SP7
Trans"er !"
In#estments t! SP7<
Parent Co
SPV
Shareholders
isted
isted
J Co
Issue of Shares in
Consideration
!ransfer of
investment
Parent Co
SPV
Shareholders
isted
A)ternati#e +A
J Co
isted
Parent Co
SPV
Shareholders
isted
A)ternati#e +B
J Co
isted
Cnlisted
Issue of Shares in
Consideration
Parent Co
SPV
Shareholders
isted
Cnlisted
J Co
Cnlisted
- +erge SPV into J Co/ and get J Co>
shares listed
- As consideration J Co issues shares
to shareholders of SPV i>e> Parent
Co and its shareholders
- +erge J Co/ into SPV
- Investment of SPV in J Co
&ill get cancelled> No
further shares &ill be
issued
";;?
";;?
OStructure under Alternative 2 shall be similar
SPV to merge into J
Co>
J Co> to merge into
SPV
A)ternati#e +
Strictly Private & Confidential ";
Agenda
1NA+
1NA+
About Restructuring
About Restructuring
Case Study / 7a)ue Creati!n thr!u%h )istin%
Case Study / 7a)ue Creati!n thr!u%h )istin%
Ni(h!)as Pirama) India Ltd
Ni(h!)as Pirama) India Ltd
Reliance Industries td
Reliance Industries td
!V "# India imited
!V "# India imited
Case Study $ Control & %&nershi'
Case Study $ Control & %&nershi'
Sterlite
Sterlite
(harat )orge
(harat )orge
%ther Cases
%ther Cases
Strictly Private & Confidential ""
Case Study - Nicholas Piramal India td
NPI
@@P
? S(heme !" Arran%ement bet5een Ni(h!)as Pirama) India Ltd. =NPIL> and ?!@am 6inin#est Ltd. =?6L> "!r trans"er !" AB.CDE
sta$e !" 4u@arat 4)ass Pri#ate Ltd. =44PL> he)d by NPIL t! ?6L
? A**!inted Date F .+
st
Gu)y 1..B& E""e(ti#e Date F 11
nd
De(ember 1..B
Shareholders
:B?
isted
Cnlisted
Pri!r t! S(heme !"
Arran%ement
NPI
@@P
Shareholders
:B?
isted
Cnlisted
Pri!r t! the
A**!inted Date
P)
Cnlisted
";;?
?
P) &as incor'orated on *;
th
Qune 2;;*
&ith a 'aid u' ca'ital of Rs> < a-hs as
a &holly o&ned subsidiary of NPI
NPI
@@P
Shareholders
:B?
isted
Cnlisted
Pursuant t! a S(heme !"
Arran%ement
P)
isted
;>